TREASURIES-Dip in Asia on Greek aid; data, earnings eyed

TOKYO, April 12 (Reuters) - U.S. Treasuries slipped in Asia on Monday after euro zone finance ministers endorsed a rescue package for Greece, sapping demand for lower-risk government debt.



* Euro zone leaders approved a giant 30 billion euro ($40 billion) emergency aid mechanism for debt-plagued Greece on Sunday, but stressed Athens had not requested the plan to be activated yet. Losses in Treasuries stemming from the aid package for Greece were limited as the prospect for the country's ability to cut its debt remains uncertain, market analysts said.



* In the absence of longer-dated supply this week, investors are expected to take a cue from U.S. data including retail sales, consumer prices and housing starts for March.



* The U.S. earnings season kicks off this week with major corporations such as Alcoa, Intel, JPMorgan Chase and Google to report quarterly results.



* 'The Treasury market reaction will likely be through stocks' response to such economic events,' said a fixed-income strategist at a Japanese securities firm. There is more risk for the 10-year bond yield to rise as those economic figures are likely to confirm the economy is recovering gradually, he said.



* 'But since U.S. stocks have already risen, it is a question of how much stocks can rise even if the data and earnings are positive,' the strategist said.



* T-note futures slipped 7.5/32 to 115-21.5/32. Benchmark 10-year notes fell 9/32 to yield 3.9176 percent , up about 4 basis points from U.S. late trade on Friday. The 10-year yield has slipped from its highest point in nearly 18 months at 4.0130 percent hit last week.



* Overall Asian shares were firm, with Tokyo's Nikkei average rising 1 percent and MSCI's broad measure of Asian stocks outside Japan gaining 0.2 percent.



(Reporting by Kaori Kaneko; Editing by Chris Gallagher)

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